Thai AirAsia Targets 5.2 Million Passengers This Year
By D. Arul Rajoo

BANGKOK, June 24 (Bernama) -- Thai AirAsia, a subsidiary of Malaysia's AirAsia low-cost carrier, is confident of achieving its target of 5.2 million passengers this year, despite several hicups, including political instability, Influenza A(H1N1) and global economic recession.

Its chief executive officer, Tassapon Bijleveld, said the strong showing in the first quarter of the year -- where the company posted a 15 to 20 per cent growth as compared to the corresponding period last year -- had boosted their confidence.

"But the market is weak currently, and we are doing our best to stimulate the market with such initiatives," he said, after announcing its parent company's move to waive the administration fee for passengers booking tickets with the airlines.

Tassapon is hopeful that waiving the administration fee (100 baht in Thailand) would boost ticket sales as passengers just needed to pay for ticket fare and airport tax, which is 50 or 100 baht for domestic routes and 700 baht for international flights departing from the Kingdom.

Last year, the airline carried 4.2 million passengers.

Tassapon said the Influenza A(H1N1) scare was affecting the market as the number of passengers had dropped. To date, the Thai Public Health Ministry has confirmed 985 such cases in the country.

"We hope to see signs of recovery within 60 days as people are cautious now because of the flu. But the key to travelling in Thailand is political stability and fortunately it's good now," he said.

Tassapon said the Phuket and Bali sectors were among the best routes served by the airline, adding that plans to make the island the second Thai hub after Bangkok, was expected to materialise by the fourth quarter of the year.

On its expansion plan, Tassapon said they were finalising plans to open several destinations in India and more cities in China, year end.

"We are aiming to tackle China and India as they are big markets. We intend to do that once we receive more Airbus planes by the end of the year," he said, adding that it currently had nine Airbus and six Boeings.

KUALA LUMPUR, June 24 (Bernama) -- The government has appointed a consultant to resolve the issue of airport tax arrears of RM65 million owed by AirAsia Bhd to Malaysia Airports Holdings Bhd (MAHB).

Prime Minister Datuk Seri Najib Tun Razak said the government has studied the matter and it would be used as a basis to resolve the problem.

"There is still a gap between AirAsia and MAHB and we have appointed a consultant to find the middle path ... it has been studied now by the government and we will use that as a basis to resolve the problem between them.

"It will be seen as an objective, we are not going to take side ... we will decide on the basis of principle," he said at a press conference after officiating at The National Baitulmal Convention 2009 at Masjid wilayah Persekutuan here Wednesday.

Najib, who is also finance minister, told the Dewan Rakyat Tuesday MAHB did not take any drastic action to claim the arrears owed by AirAsia because it would only affect the operation of the low-cost carrier terminal.

He said it would also give a negative impact to MAHB as the operator and manager of airports.

Najib said MAHB was in negotiations with the airline to resolve the matter, adding MAHB was confident in resolving the matter.

AIRASIA said it has been making monthly payments on the money owing to Malaysia Airport Holdings Bhd (MAHB) for using its airport services.

However, there is a portion that has remained outstanding, pending decision on AirAsia's request for MAHB to review its charging mechanism, AirAsia chairman Datuk Abdul Aziz Abu Bakar said in a statement today.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

"These (outstanding sum) include the high airport terminal charges and tariff which are the same as those applied to the KL International Airport (KLIA) Main Terminal Building which we feel is too high considering the very basis for facilities at the Low Cost Carrier Terminal (LLCT)," he said.

Transport Minister, Ong Tee Kiat had on May 20 told the Parliament that AirAsia owed about RM110 million to MAHB for its use of aiports in the country from March 2002 to March 31, 2008.

"AirAsia is in a strong financial position and able to meet its financial obligations as and when due," the statement said.

The company abided by the government's directive to move to the LCCT from the Main Terminal Building on March 23, 2006 in support of the government's effort to boost the LCC industry in Malaysia and to turn Kuala Lumpur into the regional LCC hub.

"We received indications that MAHB would review for a contract as well as a service level agreement but three years on after the move, neither a commercial agreement or a service level agreement had been prepared and presented to MAHB," Abdul Aziz said.

With the increasing aircraft fleet, increased passenger numbers brought into Malaysia via LCCT and substantial landings due to higher flight frequency and aggressive route expansion, the company has helped MAHB recover its investment in terminal buildings, runway and supporting infrastructure much earlier than expected, he said.

This is the company's contribution to improve the efficient and effective utilisation over some of these charges and that dispute needs to be resolved.

"Contrary to claims made, the current management of AirAsia has paid MAHB on a monthly basis.

"The issue is not one of AirAsia withholding payments to MAHB but the issue is that there is a dispute over some of these charges and that dispute needs to be resolved," Abdul Bakar added.

He, however said that the company welcomed the government's move to appoint a consultant to resolve the issues between AirAsia and MAHB.

"We hope the government's intervention in this matter will help bring about a swift resolution that will be beneficial to all parties concerned," he said.

Since moving to the LCCT in March 2006, AirAsia has been overcharged by no less than RM12 million.

There are also growth incentives on the increase in number of passenger throughput and landings worth no less than RM90 million, for which both parties have been in discussion but yet to reach a conclusion.

AirAsia has since 2003 paid MAHB a total of RM404 million.
In 2008, it paid RM117 million, while in the first five months of this year, over RM40 million has been paid. -- Bernama

AirAsia taken to task over NFL dealWhile local sports bodies beg for money, airline sponsors American football team
Jonathan Fernandez
Thursday, June 25th, 2009 08:32:00

SPONSORED: Oakland Raiders team players posted on an aircraft

CHARITY, they say, begins at home. This, apparently does not apply to Malaysia's low budget carrier AirAsia. While its support for local sports has been largely in the form of discounted flights, the carrier is about to splash out millions in cash to an American football team in a major deal to be announced tomorrow.

Baffling is why AirAsia is even pursuing this deal - it doesn't even fly to the US and yet, is doling out cash for a sport with hardly a following in Malaysia.

Equally puzzling is how the no frills airline, which had its early success from strong Malaysian support to see a local airline make a global name, can afford to splash extravagant amounts when it owes Malaysia Airports Holdings Bhd (MAHB) RM65 million in airport tax.

Yesterday, AirAsia even admitted that it was withholding the payment unless MAHB lowered the airport charges! (See accompanying story)

Meanwhile, Malaysian sports figures said AirAsia could do a lot more to support local sports rather than be generous with foreign sponsorships.

Olympic Council of Malaysia (OCM) secretary-general Datuk Sieh Kok Chi said the carrier's support has been quite minimal so far. "At the moment, all we get are minimal rates for flights domestically and within South East Asia. There is no cash funding involved.

"But something is better than nothing. They have helped us, I don't want to be ungrateful by saying that they have not helped at all. However, I'm disappointed as I feel that they can offer much more. But we got to live with what we have."

Sieh continued by saying that OCM does not have constraints in finding sponsors, adding that AirAsia could definitely afford to be more generous.

While details are still sketchy on the National Football League (NFL) deal with the Oakland Raiders, the sponsorship is likely to be worth at least RM1 million. At the sponsorship announcement by AirAsia group chief executive officer Datuk Seri Tony Fernandes and Oakland Raiders owner Mark Davis, the airline will also unveil the Oakland Raiders livery on AirAsia's aircraft.

The event is expected to be attended by Oakland Raiders legend Ted Hendricks and famed Raiderettes (official cheerleaders of the Oakland Raiders) April Dizon, Angel McCoy and Amanda Voecks.

Contacted yesterday, Fernandes declined to say much about the deal.

"There will be a Press conference on Friday (tomorrow) and it will not be fair to others if I respond (to your questions). Everything will be revealed on that day," said Fernandes, who turned AirAsia into Asia's No 1 low budget carrier. AirAsia has expanded its routes outside Asia to include Australia and London. It had announced in March that it was looking at the US and Middle East sectors as well.

And one way the carrier has made headway in globalising its brand name is by involving itself in sports sponsorships - mainly overseas.

Among the millions AirAsia has pumped for international presence includes a reportedly S$1million (RM2.3m) sponsorship for a basketball team in Singapore called Singapore Slingers, which takes part in the National Basketball League.

While the value of its other major sponsorship deals were not revealed, the endorsement of professional referees in the English Premier League, the AT&T Williams team in Formula One, and now with Oakland Raiders, run into millions.

To get an idea of just how much money is being splurged, AirAsia had earlier this year flirted with the idea of being the jersey sponsors for Manchester United - in a deal which would have cost a staggering US$100m (RM340m).

Even a football team in Thailand received three million bahts (RM300,000) in the form of travel, a privilege the Olympic Council of Malaysia (OCM) enjoys with the carrier.

AirAsia was also the main sponsors for the Asia Cup hockey tourney in Kuantan, for which it reportedly provided RM500,000.

CEO: AirAsia keen to fly to US destinations
Saturday June 27, 2009
By LEONG HUNG YEE

Datuk Tony Fernandes (left) and Mark Davis at the
briefing to announce AirAsia's sponsorship of the Raiders team.

SEPANG: AirAsia Bhd, which has just signed a sponsorship deal with National Football League’s (NFL) Oakland Raiders, is keen to fly to US destinations.

Group chief executive officer Datuk Tony Fernandes said the budget airline would fly to North America once it sorted out the legal issues and obtained clearance from the respective countries. However, he did not give a timeline.

“It (the United States) is a market that we’re very keen on,” Fernandes told a press conference to announce its sponsorship of the Raiders yesterday.

AirAsia also unveiled the Raiders’ aircraft livery. Also present at the event were Raiders owner Mark Davis and legends Ted Hendricks, Rod Martin and Cliff Branch. The team’s official cheerleaders Raiderettes were also present.

Its associate long-haul, low-cost carrier AirAsia Xcurrently flies to several destinations in the region, Europe and Australia.

AirAsia X chief executive officer Azran Osman-Rani said the carrier was very “keen to secure rights” to the United States.

“The aircraft donned with the Oakland Raiders brand symbolises our ambition to open up the US market as our future growth area.

“We’ll be flying this aircraft into Oakland at the start of this coming NFL season,” Azran said.

Fernandes said the airline was looking at New York City, Los Angeles and San Francisco, and one day it would like to go to Hawaii.

“America is a new chapter for us. We’re reaching out to a new market. The partnership with Oakland Raiders is expected to be the catalyst in promoting the AirAsia brand in the United States,” he said.

He added that the partnership was part of its strategy to develop AirAsia into a global brand.

To a question, Azran said it had been discussing with the NFL team for about six months before the deal was concluded.

However, he declined to reveal the cost of the partnership but said it was a “long-term” plan.

“By promoting Malaysia in North America, we hope to bring more travellers from that part of the world to Malaysia, which will help boost tourism and the local economy,” Azran said.

On criticism that AirAsia only sponsored overseas sports team, Fernandes said it was among the top four local corporates to sponsor local sports teams.

“We have just sponsored the Malaysian Hockey Federation by being the title sponsor and the Women’s World Table Tennis Championships 2008,” he said.

In a separate press conference, AirAsia chairman Datuk Abdul Aziz Abu Bakar said it had been making monthly payments to Malaysia Airports Holdings Bhd (MAHB).

“However, there is a portion outstanding, pending decision on AirAsia’s requests for MAHB to review its charging mechanism,” he said.

Abdul Aziz said some Members of Parliament who brought up the issue had misconstrued that AirAsia had not paid MAHB since 2002.

“We have been paying MAHB on a monthly basis. For the first five months of this year, we’ve paid over RM40mil. AirAsia has, since 2003, paid MAHB a total of RM404mil. In 2008, we paid RM117mil.”

Abdul Aziz said AirAsia had been overcharged by about RM100mil by MAHB.

“Since moving to the low-cost carrier terminal in March 2006, AirAsia had been overcharged by no less than RM12mil.

“There are also growth incentives on the increase in the number of passenger throughput and landings worth no less than RM90mil, for which both parties have been in discussion but yet to reach a conclusion,” he said.

The issue was not about AirAsia not making payments to MAHB, Abdul Aziz stressed, adding that he welcomed the Prime Minister’s announcement on the appointment of a consultant to resolve this and other outstanding issues between the two parties.

AirAsia (5099) will sponsor National Football League (NFL) Oakland Raiders for "multiple years" in a move to boost its brand recognition in America.

While the scope of the sponsorship has not been fully finalised, AirAsia has marked the start of the sponsorship by painting one its Airbus A340s, plying the Kuala Lumpur-London route, with the Oakland Raiders livery.

"This is not about flying to America, its really about the millions of Americans who travel through Southeast Asia, and we want them to remember the AirAsia brand," AirAsia chief executive officer Datuk Seri Tony Fernandes said in Sepang yesterday.

He attributed AirAsia X's success in filling up flights from London, for example, to its sponsorship of Manchester United. In 2005, AirAsia signed a deal to be the football club's official low-cost carrier.

AirAsia X chief executive officer Azran Osman-Rani said the trans-continental aircraft painted in Oakland Raiders livery, signifies the airline's ambition to open up the North American market as its future growth area. American destinations on the radar include New York, Los Angeles, San Francisco and Hawaii.
On a recent report which criticised AirAsia for sponsoring the American team instead of a Malaysian one, Fernandes said in terms of sponsorships, the airline is one of the top supporters of Malaysian sports.

"Sponsorship is not charity. We have a responsibility to our shareholders to deliver value (for everything we do)," he said.

"However, there is a disputed amount of about RM100 million which is still outstanding (which we believe we are being overcharged), pending a decision of AirAsia's requests for MAHB to review its charging mechanism," he said.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

3. AirAsia Group currently boasts a fleet of 78 aircraft (44 for Malaysian operations) that flies to a total of 108 domestic and international routes and operates over 500 domestic and international flights daily from 6 hubs.

4. AirAsia has carried, thus far, over 61 million guests since its first day of operation.

AirAsia was Asia's 8th largest carrier in 2007/2008 period (in just 7 years since birth).

The miracle continues and we await its latest achievement to be known in coming days.

__________________

Quote:

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AirAsia (5099) will sponsor National Football League (NFL) Oakland Raiders for "multiple years" in a move to boost its brand recognition in America.

While the scope of the sponsorship has not been fully finalised, AirAsia has marked the start of the sponsorship by painting one its Airbus A340s, plying the Kuala Lumpur-London route, with the Oakland Raiders livery.

"This is not about flying to America, its really about the millions of Americans who travel through Southeast Asia, and we want them to remember the AirAsia brand," AirAsia chief executive officer Datuk Seri Tony Fernandes said in Sepang yesterday.

He attributed AirAsia X's success in filling up flights from London, for example, to its sponsorship of Manchester United. In 2005, AirAsia signed a deal to be the football club's official low-cost carrier.

AirAsia X chief executive officer Azran Osman-Rani said the trans-continental aircraft painted in Oakland Raiders livery, signifies the airline's ambition to open up the North American market as its future growth area. American destinations on the radar include New York, Los Angeles, San Francisco and Hawaii.
On a recent report which criticised AirAsia for sponsoring the American team instead of a Malaysian one, Fernandes said in terms of sponsorships, the airline is one of the top supporters of Malaysian sports.

"Sponsorship is not charity. We have a responsibility to our shareholders to deliver value (for everything we do)," he said.

"However, there is a disputed amount of about RM100 million which is still outstanding (which we believe we are being overcharged), pending a decision of AirAsia's requests for MAHB to review its charging mechanism," he said.

He said this in response to statements made in the Parliament recently that the company has not paid MAHB since 2002.

Update:

Quote:

Originally Posted by kealchg

AirAsia X newest metal, the Airbus 340 made a pit stop a few times in KCH!

SEPANG: National carrier Malaysia Airlines (MAS) was named Airline of The Year 2008 for the third consecutive year at the Annual KLIA Award here on Saturday.

AirAsia won the Low-Cost Airline of The Year award while AirAsia Indonesia was given Foreign Airline of The Year title. For cargo category, MasKargo won Airline of The Year award while Korean Air was named Foreign Airline of The Year.

The KLIA Awards, organised by Malaysia Airports Holdings Bhd (MAHB), offers recognition to 15 different categories of airlines and service providers operating at KL International Airport.